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Rising Home Values and Ownership in Shelter Island: A Picturesque New York Community's Housing Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Shelter Island, located in New York state, is a charming coastal community known for its picturesque landscapes and tranquil atmosphere. This small town has experienced significant changes in homeownership rates and housing market dynamics over the past decade. The ownership percentage has fluctuated, while average rent prices have remained stable, and average home prices have shown a notable increase in recent years.
The homeownership rate in Shelter Island has exhibited considerable variability from 2013 to 2022. In 2013, the ownership rate stood at 75%, rising to a peak of 89% in 2021 before decreasing to 78% in 2022. This fluctuation doesn't show a clear correlation with average home prices, as home price data is only available for recent years. However, the high ownership rates suggest a strong preference for homeownership in the community despite potential price increases.
Federal interest rates have played a role in homeownership trends in Shelter Island. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. This low-interest environment likely contributed to the high homeownership rates observed during this time, peaking at 89% in 2021 when the federal interest rate was at a mere 0.08%. As interest rates began to rise in 2022 to 1.68%, we see a corresponding decrease in homeownership to 78%, suggesting that higher borrowing costs may have impacted some residents' ability or willingness to purchase homes.
The rental market in Shelter Island has shown interesting trends. The percentage of renters fluctuated between 7% and 22% from 2013 to 2022. Notably, the average rent price remained constant at $1,750 throughout this period, despite changes in the renter population. This stability in rent prices, coupled with the fluctuating renter percentage, suggests that other factors, such as housing availability or local economic conditions, may have influenced the rental market more than price dynamics.
In 2023 and 2024, Shelter Island experienced a significant increase in average home prices. The average home price in 2023 was $1,489,194, rising to $1,536,220 in 2024, representing a 3.16% increase. This substantial jump in home values occurred alongside a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may pose challenges for potential homebuyers in the near future.
Looking ahead, we can predict that average home prices in Shelter Island will continue to rise over the next five years, albeit at a potentially slower rate due to the high interest rate environment. Based on the recent price increase of 3.16%, we might expect average home prices to reach approximately $1,785,000 by 2029. However, this growth could be tempered if interest rates remain high, potentially leading to a more modest increase to around $1,700,000. As for rent prices, given their historical stability, they may remain close to the $1,750 mark, but could potentially increase to about $1,900-$2,000 per month to reflect overall market appreciation and inflation.
In summary, Shelter Island has maintained high homeownership rates despite fluctuations, with recent years showing a slight decline possibly due to rising interest rates and home prices. The rental market has been characterized by stable prices but varying occupancy rates. The dramatic increase in home values in 2023 and 2024, coupled with rising interest rates, signals a changing landscape for both homeowners and potential buyers in this desirable coastal community.
